Decline in nickel prices puts pressure on stainless steel prices

Friday, 03 August 2012 14:21:28 (GMT+3)   |  
During this week, nickel prices at the London Metal Exchange (LME) have been trending down, declining to the level of $15,480/mt for cash settlements yesterday, August 2. Early predictions at the beginning of 2012 were for nickel prices to reach $20,000/mt. However, it is uncertain whether nickel prices, which have been on downward trend for months, will see the level of $20,000/mt in Q4.

Steel mills and suppliers in the global market have been forced to reduce their stainless steel prices due to lower nickel prices and weak demand. Early this week, mills in Taiwan announced price cuts again for their August shipment stainless steel prices both for domestic and export markets.

On the other hand, import offers for 304 2B stainless steel cold rolled coils (CRC) of 2 mm thickness to Turkey are at $2,700/mt CFR, though offers with lower prices are also available in the market. Traders, who have been concluding deals in line with their needs, are hopeful for the post-Ramadan period. If stainless steel demand starts to revive after Ramadan, sales activities will likely improve at least for a while. In the meantime, Turkey's stainless flat steel imports in June-July are expected to be lower compared to May, when prices had indicated increases compared to earlier months.    


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